Thursday's huge turnaround in the major U.S. indexes was not
driven by a bullish outlook for risk assets, or a contrarian
bullish outlook on the part of investors relative to the CPI.
It
was driven by factors that we refer to as "tacticals" — factors
like player positioning, algorithmic trade executions, market maker
activity, options-related buying and selling, and other aspects of
market plumbing that are magnified in low-liquidity market
conditions.
Justice Clark Litle
Chief Research Officer,
TradeSmith
Why the whipsaw yesterday? Thursday's huge
Posted by mdgfain on 14th of Oct 2022 at 05:17 pm
Why the whipsaw yesterday?
Thursday's huge turnaround in the major U.S. indexes was not driven by a bullish outlook for risk assets, or a contrarian bullish outlook on the part of investors relative to the CPI.
It was driven by factors that we refer to as "tacticals" — factors like player positioning, algorithmic trade executions, market maker activity, options-related buying and selling, and other aspects of market plumbing that are magnified in low-liquidity market conditions.
Justice Clark Litle
Chief Research Officer, TradeSmith
In his Tradesmith Decoder comments today
Sounds right. Driven by the
Posted by fredsaid on 14th of Oct 2022 at 09:59 pm
Sounds right. Driven by the big money fixers !